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skad [1K]
4 years ago
7

The competitive equilibrium rent in a standard two bedroom apartment in lawrence (a city) is $600. now suppose the city council

imposes a rent control law, imposing a price ceiling of $500. what is the impact of the rent control law?
Business
1 answer:
Mekhanik [1.2K]4 years ago
8 0
<span>Setting a rent control price ceiling will cause the same impact as any other price ceiling that is below the market equilibrium price: it will create a shortage in the market. At the price equilibrium of $600, the number of renters would exactly meet the number of available 2 bedroom apartments. However, with this fixed price ceiling, the position along the demand curve will shift to one of higher demand, with no analogous change in the supply curve. Thus there will be more renters than can be supported, and renters will have to look for alternatives and substitutes.</span>
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5 0
4 years ago
The standard costs and actual costs for direct materials for the manufacture of 3,000 actual units of product are as follows: St
svetoff [14.1K]

Answer:

$2,250 favorable

Explanation:

The direct material price variance is computed as;

= ( Standard price - Actual price ) × Actual quantity

Given that;

Standard price = $8.75

Actual price = $8

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Direct material price variance

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6 0
3 years ago
A share of common stock just paid a dividend of $1.00. If the expected long-run growth rate for this stock is 5.4%, and if inves
BlackZzzverrR [31]

Answer:

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A share of common stock just made a dividend payment of $1.00

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= 5.4/100

= 0.054

The investors required rate of return is 14.2%

= 14.2/100

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The first step is to calculate the dividend year 1(D1)

D1= Do(1+g)

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Therefore, the stock price can be calculated as follows

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